(26 August 2015 Hong Kong) Agile Property Holdings Limited (“Agile” or the “Group”; Stock Code: 3383), one of the leading property developers in China, is pleased to announce its interim results for the six months ended 30 June 2015 (“Review Period”).
For the Review Period, the revenue and gross profit of the Group was RMB17,300 million and RMB5,128 million respectively. Profit for the period amounted to RMB1,403 million. Overall gross profit margin and net profit margin were 29.6% and 8.1% respectively. The board of directors of the Company has resolved not to declare any interim dividend in respect of the six months ended 30 June 2015.
Commenting on the Group’s 2015 interim results, Mr. Chen Zhuo Lin, Chairman and President of the Group, said, “In the first half of 2015, China’s economy continued to grow and the property market showed signs of recovery driven by a number of favourable policies. During the Review Period, the Group capitalised on market opportunities and adjusted its marketing strategy flexibly. By launching projects in a timely manner at reasonable prices, the Group’s accumulated pre-sales was RMB20,810 million, which was in line with expectation. The accumulated GFA pre-sold was 2.255 million sq.m., and the corresponding average selling price was RMB9,231 per sq.m..
During the Review Period, the Group’s revenue was comparable with the corresponding period of last year. The Group continued to be one of the leaders in pre-sales performance in property markets including Zhongshan, Guangzhou, Hainan and Yangzhou etc.. In addition, the Group had 70 projects available for sale, including the newly launched Agile Evian Town Changsha. Furthermore, the Group’s completed GFA held for sale had decreased due to active inventory clearance.”
In respect of other businesses, with more properties delivered during the Review Period, the Group’s revenue from property management increased by 17.9% when compared with the corresponding period of last year. Revenue from hotel operations also recorded an increase of 25.4% when compared with the corresponding period of last year, generating steady income for the Group. In respect of the property investment business, Agile International Plaza Shanghai recorded an occupancy rate of 93%.
Given its sufficient land bank, the Group had slowed down the pace of land acquisition during the Review Period. The Group acquired land parcels with a total planned GFA of nearly 150,000 sq.m. in Changsha, with average land cost being RMB449 per sq.m.. As at 26 August 2015, the Group had an aggregate land bank with a total planned GFA of 38.58 million sq.m. in 41 cities and districts, with average land cost being RMB1,133 per sq.m., which offers certain competitive advantage to the Group’s property development business.
During the Review Period, the Group made efforts to accelerate the sales turnover and enhance cash management. In addition, the Group has consolidated and optimised its financial structure by capitalising on multi-channel financing, with a view to striking a balance between business development and financial management. During the Review Period, the Company successfully issued US$500 million 9.0% Senior Notes due 2020 to refinance its existing indebtedness, improving the Company’s liquidity and optimising its debt structure effectively. As at 30 June 2015, the net debt to total equity ratio of the Group was 72.4%, a decrease of 2.8 percentage points when compared with 31 December 2014.
Mr. Chen concluded, “Looking ahead, China’s economy is expected to grow steadily in the second half of 2015. The continuous improvement in the property market sentiment is believed to stimulate markets focused on products catering for end-users’ demand, and the overall market condition is expected to further improve in the second half of the year. In the long term, on the back of China’s continuous economic growth, the ongoing urbanisation and the continued increase in people’s income, the Group believes that the demand of first time home buyers or upgraders will dominate the market, driving the healthy growth of the property market. Moving into the second half of the year, the Group will continue to offer new products in a number of its projects and launch 8 new projects, a majority of which are products catering for end-users’ demand from first time home buyers and upgraders. In addition, with new projects in Eastern China Region and Central China Region planned to be launched, the Group’s overall geographic presence will be further improved.
The Group will continue to enhance its overall management and execution capability, with a view to laying a solid foundation for healthy development in the long term, through optimising the structure and decision-making process, with effective control on administrative expenses and enhancement on efficiency. In respect of sales, while maintaining reasonable profitability, the Group will adopt flexible sales strategies to improve its sell-through rate and actively clear inventory, in order to enhance the cash flow.
Furthermore, with a view to maximising shareholders’ value, the Group is conducting strategic review of certain assets and operations by evaluating various alternatives including but not limited to: potential opportunities to accelerate the growth of the Group, bringing in cooperative partners and monetising some assets. The strategic review considers the Group’s overall requirements on capital, with an emphasis on non-core assets, including hotel and commercial properties, which are not related to the integrated residential community development and operations. No decision or time schedule has been made on the implementation of any strategy or proposal, and the Group will make an announcement in due course and as appropriate. In the meantime, the Group will continue to operate the business in the ordinary and usual course, implement the optimisation of human resources in order to enhance overall execution capability and competitiveness, and build a talent pool for the future development of the Group.”
|For the six months ended 30 June||Change|
|Revenue (RMB million)||17,300||17,281||0.10%|
|Gross profit (RMB million)||5,128||6,111||-16.10%|
|Profit for the period (RMB million)||1,403||2,454||-42.80%|
|Profit attributable to shareholders of the Company (RMB million)||965||2,043||-52.80%|
|Core profit attributable to shareholders of the Company*(RMB million)||924||1,882||-50.90%|
|Basic earnings per share (RMB)||0.248||0.593||-58.20%|
* Profit attributable to shareholders of the Company excluding fair value adjustments